ISC Reports Financial Results for the First Quarter of 2026

• Information Services Corporation (ISC) reported First Quarter 2026 financial results with revenue of $61.8 million, up 4% year-over-year from $59.3 million in Q1 2025.
• Net income increased significantly to $9.2 million ($0.49 per diluted share), compared to $7.5 million ($0.40 per share) in the prior year period.
• Adjusted EBITDA rose to $24.3 million with an improved margin of 39% versus 37% in Q1 2025.
• Registry Operations revenue grew 12% YoY to $33.1 million, driven by Land Registry growth and digitization services for MECP.
• Recovery Solutions division delivered record results with revenue growing from $4.1 million to $5.3 million.
• Technology Solutions segment declined 19% to $6.9 million compared to Q1 2025.
• Cash balance stands at $21.4 million as of March 31, 2026.
• Total debt decreased to $150.1 million from $153.1 million at the end of 2025.
• Net leverage achieved was 2.16x, within the target range of 2.0x – 2.5x.
• A new seven-year agreement was entered with Ontario’s Ministry of Public and Business Service Delivery to enhance the Property Tax Analysis System.
• The Board's strategic review continues, evaluating asset sales, acquisitions, or a sale of the company.
• Full-Year 2026 Guidance reaffirmed: Revenue $273.0 million to $283.0 million; Adjusted EBITDA $100.0 million to $107.0 million.

• The earnings release confirms the company's ability to deleverage its balance sheet while under a strategic review, reducing execution risk for potential acquirers.
• Net income beat is material relative to prior year performance ($0.49 vs $0.40), indicating improved operational efficiency and margin expansion.
• Revenue growth of 4% is modest but consistent with the guidance trajectory provided in February 2026, suggesting no surprise upside or downside on top-line growth.
• The decline in Technology Solutions revenue (-19%) is a negative signal for that segment's near-term contribution, offset by strength in Registry Operations and Recovery Solutions.
• Debt reduction to $150.1 million moves the company closer to its target net leverage of 2.0x, improving financial flexibility.
• The strategic review update remains non-committal ("continuing"), meaning no immediate M&A catalyst is confirmed despite market speculation.
• Overall impact is positive but incremental; it validates the guidance rather than exceeding expectations significantly enough to warrant a "Material - Positive" rating over "Routine".

• Company: Information Services Corporation (ISC), a provider of information services and technology solutions primarily serving government and commercial clients.
• Flagship Project: Registry Operations division is the core revenue driver, managing land registries and personal property registries in Saskatchewan and other jurisdictions.
• Key Segments:
  • Registry Operations: High-margin, stable cash flow from real estate and corporate filings.
  • Services Segment: Includes Recovery Solutions (record growth) and Regulatory services.
  • Technology Solutions: Third-party contracts and system enhancements; currently underperforming (-19% YoY).
• Strategic Initiatives: Expansion into international registries (MAC Equipment) and digitization of government records (Ontario Property Tax Analysis System).